Whalesbook
Figure Technology Solutions is challenging mortgage giants Fannie Mae and Freddie Mac with its blockchain platform for first-lien originations. CEO Mike Cagney said the company can slash origination costs to about $1,000 per loan. This is a stark contrast to the estimated $11,000 cost typically associated with the government-sponsored enterprises (GSEs) that buy mortgages from lenders.
Efficiency and Market Focus
The strategy focuses on cutting costs and speeding up processes. Figure claims its platform can approve Home Equity Line of Credit (HELOC) applications in just five minutes and fund loans within three days, far faster than the industry standard of 30 to 45 days. The platform also aims to offer originators a guaranteed buyer for their loans, similar to the role Fannie Mae and Freddie Mac play.
Cagney identified the sub-$300,000 segment of the first-lien mortgage market as the primary target. He explained that current GSE fee structures make smaller loans less profitable for Fannie and Freddie, creating an opportunity for Figure's streamlined approach.
Blockchain Valuation Debate
Adding complexity to Figure's blockchain narrative, its HELOC tokens have been cited as the ninth-largest crypto asset by market value on a public blockchain, a position achieved about six weeks ago. However, this claim has ignited debate about what constitutes 'on-chain' activity. For instance, the founder of DeFiLlama, a crypto analytics platform, contested Figure's reported $12 billion in tokenized real-world assets, noting that only a fraction was readily visible on Figure's affiliated Provenance chain. DeFiLlama's tracker currently estimates Figure's total value locked (TVL) at around $140 million.
Financial Performance and Strategic Shifts
Beyond blockchain valuation talks, Figure's finances show a strategic shift from balance-sheet lending to a marketplace model. The company's adjusted EBITDA margin jumped from 30% to 55% in 2025, with management targeting 80-85% within one to two years. Revenues grew to $339 million in 2024 and $510 million in 2025. Sell-side analysts project revenues between $650 million and $680 million for 2026. Figure also pursued an initial public offering (IPO) in March.
Future Integrations and Listings
Looking ahead, Figure is exploring integrations with Consensys' MetaMask to use its Democratized Prime DeFi protocol, enabling lending against onchain mortgage and auto collateral. The company also announced a second listing for its equity on OPEN, Figure's own blockchain-native platform. The initial listing featured Figure's FIGR shares and a $150 million secondary offering. This move into the first-lien mortgage sector directly challenges established financial infrastructure, aiming to improve efficiency and accessibility in home lending.